But you might consider a 203(k) loan. That's a loan that combines the mortgage with rehab or repair costs. A loan officer or mortgage broker can give you more details.
To elaborate a bit more on the "no" answer, an assessment has nothing to do with the value of the house.
Even assuming that you were able to buy a property for $30,000 less than it's worth, you can't get a conventional loan for more than you're paying. And, depending on the type of the loan, for less. Example: VA loan: 100% of the purchase price (assuming it appraises for the purchase price). FHA loan: 96.5% of the purchase price. Conventional loan: 80% of the purchase price. So, no matter how great a deal you get, you'll never be able to borrow more than the purchase price . . . except for the 203(k) loan.
Hope that helps.
If you're looking for information on 203k's or HomeStyle loans (rehab loans), email me and I'll foward you an article I wrote for Chicago Agent Magazine. You can also review previous posts I've done, there is a wealth of information about both programs.
As for the assessment piece of your question, the agents below sufficiently covered that.
Amanda was generally correct in her post but she may not be aware that a HomePath renovation loan is capped at 35% of the home's after-improved value or 35k, whichever is lower.
Info on Lease Options:
Info on the criminal side of Credit Repair:
Info on Down Payment Assistance in Kentucky:
When the City Assessors Office mails out their little cards in the Spring, they are looking at data that is a minimum of 4 months old and probably older.
When you buy that house because it looks like a TJ Maxx deal on a house, you are using a misleading "Compare at...." number.
Do not kid yourself. Greentree has not finished it's slide. The Raymond/Whitney slum, the Leland, Balsam, Theresa Terrace, Hammersley disaster has yet to hit bottom.
Best of Luck!
Another possibilty is the Fannie Mae/Freddie Mac Homepath Program. For more information on this particular loan, again, you can contact your mortgage professional or click the link below for more information.
Another option would be to apply for a Home Equity Loan. The difference with this loan, however, is you would receive this line of credit after you have purchased your home. I don't mean to sound like a broken record here, but again, contact your loan officer for more information.
Great question, and good luck!
Unfortunately, that is not how it works in today's market. A home assessment has to do what you pay for taxes. What a home appraises for determines the true value of the property. What I would recommend you do is talk to your lender about getting a Home Equity Loan. Since you are in the Madison area I would suggest you calling Don at Network Funding, LLC at 608-225-8946. He has helped many of my clients who are in the same situation. If you mentioned my name Don has always expedited my clients loans.
If you have any other questions please contact me directly.
Century 21 Affiliated
However taking cash out of your home's equity is usually capped at 80-85% of your home's appraised value, not to 100% of your home's appraised value, so even when the new value can be used it may not be able to get you the cash out you are thinking.
However if you are looking to get funds to renovate a home you should look into purchase the home with an FHA 203(k) rehab loan or Fannie Mae HomeStyle renovation loan program. Both will finance the cost of improvements into your loan, assuming the "as completed" appraised value supports the funds you need to purchase + renovations.
Extensive info on FHA's 203(k) rehab loan: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm